Downfalls to companies working under government contracts from a business perspective

There needs to be a shift to the thinking of total utility for the social community in order to weigh business decisions.

The Benefits of Securing Government Contracts

This was also the case when the plant in Singapore refused to falsify the documents and were later falsified by the employees at the have California plant before being submitted to the approval committees Velazquez, There will be companies that find that they are doing fine with employees that are aware of their moral values.

As explained before, it is ideal for a company to be able to conduct its own investigation as well as its own punishments. Severin employed a subcontractor on a contract to build a post office in Rochester, New York.

In fact, when the government reached a final resolution, they decided to further impose repercussions and certain employees of National Semiconductor were banned from future work in any government office Velazquez, Therefore, when a company has acted irresponsibly, its employees must be held liable in a proportionate amount.

After the bogus testing was completed in the Company X labs, the documentation department also had to falsify documents stating that the parts had more than met the governments testing standards. For instance, that solicitation may be set aside for an 8 a contractor — a special certification that must be applied for and awarded.

It is plausible that during the testing procedure, an employee couldnt distinguish which parts they were to test under government standards and commercial standards. This was pointed out on various occasions as the main reason why National Semiconductor falsified their reports.

From a legal and ethical standpoint, both the testers and the writers of the reports were merely acting as agents on direct orders from a superior. Managing Corporate Social Impact. Iron-clad exculpatory clauses While it is readily addressed with good contract drafting, the Severin doctrine remains an important issue.

The contracts elicited from RFPs can range in the volume of work and dollar amount. Although working under these conditions does not fully excuse an employee from moral fault, it does give a starting point to help narrow down the person or department that issued the original request for the unethical acts.

Dashboard Insights

New York Times February 4, We have to balance the direct involvement that each employee had with the defective parts. Even then, it should not be taken lightly.

There are times when executives can be held directly responsible and at the same time, there are cases where employees are acting unethically without the executives knowing. New Jersey Capitman, William. After all, it would be best for a company to determine what specific departments are responsible rather than having a court of law impose a burden on every employee in its corporation.

Written Employment Contracts: Pros and Cons

The cost that the full tests would incur did not outweigh their profit margins. A Company, as defined by law, is only a name on a piece of paper. Next you would have to analyze the final ruling from a corporate perspective and then we must examine the macro issue of corporate responsibility in order to attempt to find a resolution for cases like these.

A subcontractor may have technical expertise, equipment, or human resources that are unavailable to the prime contractor.

Also, there is no way that an industry wide standard can be set since there are too many types of corporations. These evaluations are an independent audit of customer references and calculate a rating based upon a statistical analysis of performance data and survey responses.

From a business Perspective Essay

Take a close look at each solicitation. I use the word employee because in ethical thinking there should be no distinction of rank within a company. Acting in an ethical manner becomes a secondary priority in this type of environment. Taking the example of the National Semiconductor case, one can notice many failures in moral responsibility.

These long term benefits can include a stronger sense of ethics in the work force as well as a better overall society. If it was not tested properly, and did eventually fail, isnt the testing department more morally responsible than the designer or the assembly line worker that was in charge of installing the chip?

In the opinion of the executives, they were acting in a sensible manner. Therefore, when a company has acted irresponsibly, its employees must be held liable in a proportionate amount.

From a business perspective, working under government contracts can be a very lucrative proposition. Tweet Part 1 of 3: After all, no executive wants to think of themselves as morally irresponsible.

To further strengthen this need, one could argue that there are very few business decisions that do not affect society in way or another. Putnams Sons Publishing Sawyer, George.

Using contractors and subcontractors

In the synopsis of the case it is never mentioned that the employees initiated this idea, it would seem that it was the supervisors that gave the order to falsify the documents.Read this Business Essay and over 88, other research documents.

Ethics in Business. From a business perspective, working under government contracts can be a very lucrative proposition. In general, a stream of orders /5(1). There are many benefits to hiring independent contractors (ICs), but there are some disadvantages as well. Before you decide how to staff a particular job, you'll need to weigh these pros and cons -- and make sure that your choice will pass muster with state and federal auditors.

On contracts over $, (or $1, for construction of a public facility), large prime contractors and other-than-small subcontractors submit subcontracting plans containing specific percentage goals for small business, HUBZone small business, small disadvantaged business, women-owned small business, VOSB and service-disabled VOSB.

Choice in Business *From a business perspective, working under government contracts can be a very lucrative proposition. In general, a stream of orders keep coming in, revenue increases and the company grows in the aggregate. The obvious downfalls to working in this manner is both higher quality expected as well as the extensive.

Pros and Cons of Hiring Independent Contractors

- *From a business perspective, working under government contracts can be a very lucrative proposition. In general, a stream of orders keep coming in, revenue increases and the company grows in the aggregate.

Our Government Contracts Practice Group represents domestic and international companies in all phases of government contracting, including bid protests, compliance with Federal laws and regulations, Defense Contract Audit Agency audits, compliance audits, Federal Supply Schedule procurements, contract administration, suspension and debarment.

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Downfalls to companies working under government contracts from a business perspective
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